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HomeMy WebLinkAbout03-16-2010 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Tuesday, March 16, 2010 8:00 a.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of the March 2,2010 Economic Development Committee meeting minutes 3. Consideration of Moss Green Urban Village Urban Renewal Plan, approximately 243 acres, north of I -80 and west of Highway 1 4. Committee time 5. Staff time 6. Adjournment DRAFT MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE MARCH 2, 2010 LOBBY CONFERENCE ROOM, 6:15 P.M. Members Present: Staff Present: Others Present: Regenia Bailey, Matt Hayek, Susan Mims Wendy Ford, Jeff Davidson Gig Wood RECOMMENDATIONS TO COUNCIL: Mims moved to accept the staff recommendations for the Pepperwood Plaza TIF project as discussed. Hayek seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 6:15 P.M. CONSIDER APPROVAL OF THE MINUTES OF THE JANUARY 20.2010. ECONOMIC DEVELOPMENT COMMITTEE MEETING: Mims moved to accept the January 20, 2010, meeting minutes as submitted. Hayek seconded the motion. Motion carried 3-0. CONSIDER APPROVAL OF AN EXTERIOR BUILDING CHANGE IN THE PEPPERWOOD PLAZA TIF PROJECT: Ford addressed the Members regarding this project, noting that they have a memo from her in their packets. She gave a brief history on this project, sharing why they are bringing this item forward at this time. Sears Holdings, which owns the K-Mart building in the Pepperwood Plaza, is seeking to make changes to the building in order to construct a laundromat on this site. Staff in the HIS department has reviewed these plans, and according to Ford, believe most everything is approvable. Staff recommends approval of the exterior design, as shown on the drawing labeled "Proposed new Channel Letters & New Awnings" with one exception: that the channel letter K-Mart logo sign be moved over the bay of windows containing the new front door, instead of where it is shown on the plain brick faced wall to the right. After a brief discussion of related code requirements, Members agreed with staff recommendations. Mims moved to accept the staff recommendations for the Pepperwood Plaza TIF project as discussed. 1 Economic Development Committee Meeting March 2, 2010 Hayek seconded the motion. Motion carried 3-0. COMMITTEE TIME: Mims noted that she is glad to hear that things are moving along well with the Moss Green project. Davidson noted that they have some updates on this that they will share under staff time. Hayek added that they had a good meeting with P&G last week - he, Davidson, Ford, and Helling. He added that P&G expressed concerns about their tax burden and how lean of an operation they have to run in order to remain competitive in their industry. Davidson commented on some of the specifics of the P&G plant and some of their prospective plans for production. STAFF TIME: Ford asked if Members would be able to attend the March 16 regularly scheduled Economic Development Committee meeting as there could be a need to get the Urban Renewal Plan underway for the Moss Green project, and the Committee's approval would be needed. She explained the timeline they are looking at for that week. Members discussed their schedules briefly, and Bailey asked that they bring their calendars to the next meeting so they can firm up some dates. Davidson suggested the Committee meet in the evenings, prior to Council meetings, if this would work better for Members. Davidson then spoke briefly about the Moss Green project, noting that they had a meeting recently where they refined the schedule to proceed. He stated that the applicant now has a clearer understanding of the City's expectations, and the City now has a ~chedule to work from. Davidson also noted the City's new parking structure project and the interest they have seen in this. He also noted that the Towncrest redevelopment is progressing. That group met this morning to discuss things. The industrial park platting, according to Davidson, is occurring, as well. Also moving along is the Downtown Business Incubator project. Davidson stated that they are about a third of the way through this project. The Riverfront Crossings project grant, according to Davidson, will allow them to obtain some more consultant services there. ADJOURNMENT: Hayek moved to adjourn the meeting at 6:34 p.m. Mims seconded the motion. Motion carried 3-0. Economic Development Committee Meeting March 2, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM ...... w w EXP. N -. -. NAME I\,) ...... 0 en Regenia 01/02/11 X X Bailey Matt 01/02/11 X X Hayek Susan 01/02/11 X X Mims Key: X = Present o = Absent OlE = AbsenVExcused I ~ 1 =~5._4... ~~~!':~ ~ _aa.~ --~ CITY OF IOWA CITY MEMORANDUM Date: March 12, 2010 From: Economic Development Committee Wendy Ford, Economic Development Coordinator Proposed Moss Green Urban Village Urban Renewal Area To: Re: Presented for the Economic Development Committee review is the proposed Moss Green Urban Village Urban Renewal Plan. The plan is proposed for the purpose of and the prerequisite to establishing a tax increment financing district to finance projects within the urban renewal area. State Code requires that prior to the City council holding a public hearing on the urban renewal plan; the Planning and Zoning Commission review and submit a written recommendation to the City Council regarding the urban renewal plan's conformity with the Iowa City Comprehensive Plan. While it is not required by state law, Iowa City practice is to include the Economic Development Committee in the review process as well. Conformity with the Comprehensive Plan Economic goals outlined in the comprehensive plan are: . Diversify and increase the property tax base by 1) encouraging the retention and expansion of existing industry and 2) attracting industries that have growth potential and are compatible with existing businesses; . Increase employment opportunities consistent with the available labor force; . Provide and protect areas suitable for future industrial and commercial development; . Cooperate with local and regional organizations to promote economic development within Iowa City; . Improve the environmental and economic health of the community through the efficient use of resources; and . Consider financial incentives and programs to facilitate achieving the above goals. The proposed urban renewal project area is near the interchange of Interstate 80 and Highway One. The Iowa City Comprehensive Plan states that this area... .. . provides one of the few opportunities for office research park development in Iowa City. National Computer Systems (now Pearson, within the North Corridor Planning District) and ACT (south of 1-80 in the North Corridor Planning District) are successful examples of this type of development. With the tone set by these two companies and the advantages of interstate exposure, land around this interchange should continue to be preserved for office research park and research development park opportunities. The designation of the urban renewal project area for office, research, production and/or assembly uses is consistent with the Iowa City Comprehensive Plan. Tax increment financing For the Committee's information, the following explains how tax increment financing (TIF) will be used in the Moss Green Urban Village Urban Renewal Area. TIF is a mechanism used to finance projects within a designated urban renewal area. The difference between taxes derived from unimproved and underdeveloped property and those derived after its development is the "increment" of taxes which may be pledged by a city to retire March 12,2010 Page 2 loans, advances, bonds, or other indebtedness incurred by a city or the developer in furtherance of the development. The TIF ordinance makes available to the city all the incremental tax revenues for repayment of project related expenses. The incremental tax revenues include those levied by and for other taxing jurisdictions, such as the county, school district, and community college. Chapter 403 of the Code of Iowa sets forth the provision of tax increment financing. To establish a TIF program, a city must first prepare an urban renewal plan for a specific urban renewal area. A city may designate an urban renewal area as either a "blighted," "slum," or "economic development" area, each of which s defined in Chapter 403. In this instance, the urban renewal area is designated an economic development area, which is defined as "an area of municipality designed by the local governing body as appropriate for commercial and industrial enterprises." The City's stated objectives for the urban renewal area are outlined in the urban renewal plan. The urban renewal plan also explains why it is in the City's interest to establish this urban renewal area. Communities are more and more called upon to make financial incentives and program available to make a development site and the area attractive to potential new businesses and business expansions. Other development sites in the area, which also target office research park uses, make tax increment financing available to businesses that are looking at those development sites. To assist with ensuring that this type of Iowa City development is competitive, the City would make TIF available in the Moss Green Urban Village. The next steps in the process are that he Economic Development Committee and the Planning and Zoning Commission make recommendations to the Council and the City will hold a consultation with representatives from the county, school district, and community college, in order to provide these taxing entities with an opportunity to comment on the use of the incremental tax revenues. After the public hearing and the consultation with the affected taxing entities, the City Council may concurrently consider adoption of the urban renewal plan, the TIF ordinance and a developer's agreement. The TIF ordinance establishes the mechanism for separating the incremental tax revenues from the base tax revenues. The developer's agreement will outline more completely the City's obligations and the developer's obligations regarding development within the urban renewal area. Recommendation Staff recommends that the Economic Development Committee forward a written recommendation to the City Council supporting the Moss Green Urban Village Urban Renewal Plan. Attachments Moss Green Urban Renewal Plan Moss Green Urban Village Urban Renewal Plan CITY OF IOWA CITY, IOWA APRIL, 2010 Table of Contents Section 1 - Introduction Section 2 - District Designation Section 3 - Base Value Section 4 - Urban Renewal Plan Objectives Section 5 - Description of Urban Renewal Area Section 6 - Type of Urban Renewal Activities Section 7 - Proposed Projects Section 8 - Conformance with Land Use Policy and Zoning Ordinance Section 9 - Relocation of Families Section 10 - Financial Data Section 11 - Urban Renewal Plan Amendments Section 12 - Property Acquisition/Disposition Section 13 - Consent to Include Agricultural Land Section 14 - Effective Period Addendum No.1 - Legal Description Addendum No.2 - Moss Green Urban Village Urban Renewal Project Area Map Addendum No.3 - Agricultural Land Consents 2 1. Introduction This Urban Renewal Plan has been developed to help local officials promote economic development in Iowa City, Iowa. The primary goal of the plan is to stimulate, through public involvement and commitment, private investment in new commercial and industrial development. The goals outlined in this Moss Green Urban Village Urban Renewal Plan include the following, which are also goals included in the Iowa City Comprehensive Plan - 1997, as amended: . Diversify and increase the property tax base by (1) encouraging the retention and expansion of existing industry and (2) attracting industries that have growth potential and are compatible with existing businesses; . Increase employment opportunities consistent with the available labor force; . Provide and protect areas suitable for future industrial and commercial development; . Cooperate with local and regional organizations to promote economic development within Iowa City; . Improve the environmental and economic health of the community through the efficient use of resources; and . Consider financial incentives and programs to facilitate achieving the above goals. In order to make development sites attractive to new and expanding firms, communities are frequently called upon to provide financial incentives and programs. Other development sites in the region, which already cater to commercial, office, research, light production, and assembly uses, make tax increment financing available to qualifying businesses. As is consistent with the Iowa City Comprehensive Plan, the City has concluded it is in the interest of its citizens to encourage the development of commercial, office and research development zoned land in order to provide competitive development sites for commercial, office, research, light production and/ or assembly uses. To assist with ensuring that this type of development site is competitive, the City intends to make available the use of tax increment financing as a means to finance the construction of some of the necessary public infrastructure improvements within the Moss Green Urban Village Urban Renewal Plan Area, referred to hereafter in this Plan as the Urban Renewal Project Area or Area. In addition, the City may make available the use of tax increment financing to provide direct grants, loans or rebates for qualifying businesses planning to locate in the Urban Renewal Project Area. 3 To achieve the primary objectives of this Plan, the City of Iowa City shall undertake the urban renewal actions as specified in this Urban Renewal Plan, pursuant to the powers granted to it under Chapters 15A and 403 of the 2009 Code of Iowa, as amended. 2. District Designation With the adoption of this plan, Iowa City will designate this Urban Renewal Area as an economic development district that is appropriate for commercial and industrial development. 3. Base Value If the Moss Green Urban Village Urban Renewal Area is legally established and debt is certified prior to December 1, 2010, the taxable valuation within the district as of January 1,2009 will be considered the "base valuation". If the debt is not certified until a later date, the "base value" will be the assessed value of the taxable property in the Urban Renewal Area as of January 1 of the calendar year preceding the calendar year in which the City first certifies the amount of any debt. 4. Urban Renewal Plan Objectives The overall goal of the Moss Green Urban Village Urban Renewal Plan is to formulate and execute a workable program using public and private resources to develop the Urban Renewal Project Area for uses generally allowed in commercial, office and research park zones. Renewal activities are designed to provide opportunities, incentives and sites for commercial and industrial development. Objectives for development in the Urban Renewal Area include: . To encourage and support development that will expand the taxable values of property within the Urban Renewal Project Area; . To plan for and provide sufficient land for new commercial and industrial development in a manner that is efficient from the standpoint of providing services; . To help finance the cost of constructing street and other infrastructure improvements to support new development; . To stimulate, through public action and commitment, private investment in new commercial and industrial development; . To encourage and support development that will result in job creation; . To encourage the use of green technologies in infrastructure development, land use and new buildings; . To encourage the development of start-up firms and the attraction of new businesses; . To provide for the orderly physical and economic growth of the city; 4 . To enhance the availability of sites to accommodate the construction of industrial, commercial, office, research park and associated uses; . To assist with the provision of infrastructure to enable competitive land prices and lease rates and thereby provide a more marketable and attractive investment climate; . To make public improvements as deemed necessary by the City to support new industrial, commercial, office, research park and associated uses; and . To provide financial incentives and assistance to qualifying businesses. 5. Description of Urban Renewal Area The legal description of this proposed Urban Renewal Project Area is included in the Plan as Addendum No.1-Legal Description. The location and general boundaries of the Moss Green Urban Village Urban Renewal Plan Area are shown on Addendum No.2 - Location Map: Moss Green Urban Village Urban Renewal Project Area. This area is approximately 243 acres. 6. Types of Urban Renewal Activities To meet the objectives of this Urban Renewal Plan and to encourage the development of the area, the City intends to utilize the powers conferred under Iowa Code Chapters 15A and 403 (2009) and financial incentives, including, but lot limited to, tax increment financing. Activities may include: 1. To undertake and carry out urban renewal projects though the execution of contracts and other instruments. 2. To make or have made surveys and plans necessary for the implementation of the Urban Renewal Plan or specific urban renewal projects. 3. To make loans, forgivable loans, grants, or rebates to private persons or businesses for economic development purposes on such terms as may be determined by the Iowa City Council, in its sole discretion. 4. To provide for the installation of infrastructure and roadway improvements. 5. To use any or all other powers granted by the Urban Renewal Act to develop and provide for improved economic conditions in Iowa City. 6. To encourage the incorporation of energy efficient building techniques such as those specified in the Iowa Green Building Standards, or those attaining 5 LEED certification, through the use of tax increment financing, in the sole discretion of the City Council. 7. Proposed Proj eels Proposed projects involve activities necessary to facilitate growth in the Urban Renewal Area and provide incentives to encourage new development to locate in the area. Projects including water, sewer, street and other infrastructure may be constructed. In addition, the City may consider providing direct or indirect financial incentives to private persons or businesses as incentives to locate in the Area. Private Site Improvements Lot development may include, but is not limited to, design and construction of buildings and building additions, grading for building construction and amenities; paving and parking; landscaping; and on-site utilities. Tax increment financing may be granted to be used by qualifying businesses to finance private site improvements. Businesses incorporating energy efficient building techniques such as those specified in the Iowa Green Building Standards, or those attaining LEED certification may be eligible for additional tax increment financing, in the sole discretion of the City Council. Public Infrastructure Improvements Public infrastructure improvements may include, but are not limited to, public streets and sidewalks, sanitary sewers, storm sewers, water distribution mains and open space improvements. Tax increment financing may be available to finance the construction of these improvements, at the City Council's discretion. Financial Incentives At the City Council's discretion, tax increment financing may be available for providing direct grants, loans, or rebates for those qualifying businesses engaged in commercial, industrial, office, research park and associated use activities allowed in the Urban Renewal Project Area. The funds from the direct grants, loans, or rebates may be used for, but are not limited to, financing the public and private site improvements. Qualifying businesses and improvements shall be determined by the City Council in its sole discretion. 6 8. Conformance with Land Use Policy and Zoning Ordinance Comprehensive Plan The Urban Renewal Project Area is part of the area near the 1-80 interchange with Highway 1. The Iowa City Comprehensive Plan states that this area... .. .provides one of the few opportunities for office research park development in Iowa City. National Computer Systems (now Pearson) (within the North Corridor Planning District) and ACT (south of 1-80 in the North Corridor Planning District) are successful examples of this type of development. With the tone set by these two companies and the advantages of interstate exposure, land around this interchange should continue to be preserved for office research park and research development park opportunities. Iowa City has a general plan for the physical development of the City outlined in both the Iowa City Zoning Ordinance and the Iowa City Comprehensive Plan - 1997, as amended. The goals and objectives of this Urban Renewal Plan are consistent with the goals and land use policy contained in the Zoning Ordinance and Comprehensive Plan, which were identified and adopted as part of the planning process. Current Zoning The Project Area's present zoning designation is ID-ORP, Interim Development - Office Research Park, and is consistent with this Urban Renewal Plan. The proposed zoning, whether Office Research Park (ORP) or Research Development Park (RDP), is also consistent with this Plan. Current and Proposed Land Uses The area is comprised of approximately 243 acres of developable land. The proposed land uses include commercial, industrial, office, research, light production, and/or assembly purposes, which are consistent with the proposed zoning. 9. Relocation of Families Though the Moss Green Urban Village Urban Renewal Plan does not anticipate the need to relocate families, as there is no current residential area within the Plan, in the event that such needs arise the City will consider provisions for the relocation of persons, including families, business concerns and others who could be displaced as a result of improvements to be made in the designated Urban Renewal Project Area. 7 10. Financial Data 1. Constitutional Debt Limit: $ 136,552,095 2. Current general obligation debt: $ 84,995,000 3. Proposed amount of indebtedness to be incurred: A specific amount of tax increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds) for projects over time has not yet been determined. The City Council will consider each request for financial assistance or a project proposal on a case-by-case basis to determine if it is in the City's best interest to participate. It is estimated that the City's cost for initial anticipated projects discussed herein will be in the $10 to $15 million range. 11. Urban Renewal Plan Amendments This Urban Renewal Plan may be amended from time to time to include change in the area, to add or change land use controls or regulations, to modify goals or types of renewal activities, or to amend property acquisition and disposition provisions. If the City of Iowa City desires to amend this Urban Renewal Plan, it may do so after providing public notice, holding a public hearing on the proposed change, and undertaking other required actions, all in conformance with applicable state and local laws. 12. Property Acquisition/Disposition Other than easements and right-of-ways, no property acquisition by the City is anticipated. 13. Consents to Include Agricultural Land As the Moss Green Urban Village Urban Renewal Area contains land that is being used for agricultural purposes as defined by Iowa Code Section 403.17(3), the property owners of such land have executed consents to allow the City to include real property defined as "Agricultural Land" within the Urban Renewal Area. These Consents are attached as Addendum No.3. 8 14. Effective Period This Urban Renewal Plan will become effective upon its adoption by the City Council of Iowa City and will remain in effect as a plan until it is repealed by the City Council. With respect to any property covered by this plan which is included in an ordinance which designated that property as a tax increment area, the use of incremental property tax revenues, or the" division of revenue", as those words are used in Chapter 403 of the Code of Iowa, is limited to twenty (20) years from the calendar year following the calendar year in which the City first certifies to the County Auditor the amount of any grants, loans, advances, indebtedness or bonds which qualify for payment from the incremental property tax revenues attributable to that property. However, the use of tax increment financing revenues (including the amount of grants, loans, advances, indebtedness or bonds which qualify for payment for the division of revenue provided in Section 403.19 of the Code of Iowa) by the City for activities carried out under the Urban Renewal Plan shall be limited as deemed appropriate by the board and consistent with all applicable provisions of law. 9 Addendum No.1 Legal Description of the Proposed Urban Renewal Project Area Consisting of a tract of land described as follows: MOSS-GREEN URBAN VILLAGE A part of the subdivision of the Northeast One-Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten (10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight (8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres, more or less; and All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line and the East 63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, being more particularly described as follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right-of-Way line of Interstate 80; THENCE South 82024'15" West, along the North Right-of-Way line of Interstate 80, a distance of 646.23 feet; THENCE continuing west along the North Right-of-Way line of Interstate 80, North 88011'05" West, a distance of 1,731.77 feet; THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 89041'57" East, along said North line of the Southeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres, more or less; and HILLS BANK & TRUST and NEAL N. LLEWELLYN: The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa and that portion of The Southeast Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more or less. 10 c: +-- "0 L.. ctI > 0) :J o CO 0) lU "0 .JII:: ctI o 0) L.. :J ..... :J U. I ev C) CU - - :; C CU .c ... :::JC C CU CVa: CV "'Q. C)ev tI) u tI) C o 0 :EO Addendum No.2 Moss Green Urban Village Urban Renewal Project Area Map T"" .~ u ~ E o o 0) '" ::) "0 0) >< ~ ~ ctI a. .c: u L.. ctI 0) '" 0) ~ "0 c: ctI 0) ~ o .. ! " I ! i Ii II lJ i i 1$ I' w H- <!( f.;- <n G::: L.U H- Z ! 11 Addendum No.3 Property Owners' Consents to Include Agricultural Property Within Proposed Urban Renewal Project Area 12